Liz Claiborne Inc

Liz Claiborne Inc. designs and markets branded women's and men's apparel, accessories and fragrance products. The Company operates the following business segments: Wholesale Apparel, Wholesale Non-Apparel and Retail. Its current portfolio of brands includes most apparel and non-apparel categories, reaching consumers of various age, gender, size, attitude, shopping or value preference. These products range from classic and traditional apparel to modern and contemporary wear.

Company History
In 1976, Liz Claiborne, Art Ortenberg, Leonard Boxer and Jerome Chazen - created what is now a nearly $5 billion public company. Established at a time when women were entering the workforce in large numbers, Liz Claiborne and her partners saw the opportunity to provide  versatile, fashionable wardrobes that were appropriate for work, but still conveyed a sense  of individuality and femininity. In contrast to department store practice at the time, Liz Claiborne presented all of the brand's related sportswear pieces in one department. In the mid- 1970s and into the early 1980s the Company started testing the concept of manufacturing  overseas. Liz Claiborne established a production control office in Hong Kong by mid-1976. Liz Claiborne Inc. now sources its products in more than 40 countries around the world and routinely ships five million units per week in the U.S. alone. The company went public in 1981.

Historical Financial Information
Fortune Apparel Industry 2007 rank: 3


 * Fortune 500 2007 rank: 451


 * Most profitable public U.S. apparel firms rank: 17

Annual Income Statement

Business Strategy

 * The company markets its clothing and accessories as designer items but prices them for a broader market. Including Ellen Tracy, Laundry, Liz Claiborne, Crazy Horse, and Dana  Buchman, its brands are sold worldwide in department stores, its more than 280 specialty  stores, its more than 260 outlet stores, and numerous brand Web sites. Liz Claiborne also  makes men's clothing and licenses its name for shoes, sunglasses, swimwear, and home  furnishings. Over the last few years, the company has focused on buying and licensing a  rapidly growing closet of brands. Under Liz Claiborne's multi-channel distribution strategy,  the brands are available at over 30,000 different retail locations throughout the  world.


 * Liz Claiborne Inc. said may sell up to 16 of its brands and thin its executive ranks as part of a sweeping corporate overhaul. "Our strategy is centered on building powerful  brands. With a newly focused portfolio, realigned structure and strengthened management  team, we can commit the resources and marketing investment necessary to maximize the  potential of our most valuable properties," Chief Executive William McComb said in a  statement. The news comes as Liz Claiborne and other apparel companies have grappled with  widespread department store consolidation and a quickly changing retail industry. The  strategy of holding a varied portfolio of brands that can withstand changing fashion trends  and economic cycles has been popular with apparel companies including Liz Claiborne Jones  Apparel Group Inc. and VF Corp. But companies have recently looked to streamline their  operations. The 16 brands out of its nearly 40 holdings that Claiborne will try to sell,  license out or possibly discontinue are C&C California, Dana Buchman, Ellen Tracy, Emma  James, Enyce, First Issue, Intuitions, J.H. Collectibles, Kensie, Laundry by Design, Mac &  Jac, prAna, Sigrid Olsen, Stamp 10, Tapemeasure and Tint.

Corporate Accountability
Co-Op America Summary: Liz Claiborne strives to enhance its customers' beauty through its fragrances, acessories and  clothing. But the company has been involved in a series of of sweatshop lawsuits and questionable ethical practices which dampen the image of beauty that Liz Claiborne tries to  project. The company has refused to change the name of the Crazy Horse line of products, despite protests from Native Americans who say the name is offensive to them. Additionally, the Human Rights Campaign has given Liz Claiborne poor marks for its company policies  regarding sexual orientation. Liz Claiborne has taken some leadership against domestic violence and donated $1 million to relief following the September 11th attacks. But with a CEO making $12 million a year, and continued concerns about labor standards across their  supply chain Liz Claiborne's commitments to people appear to be no more than cosmetic. Bottom line: Tell Liz Claiborne it's time to devote resources to paying garment workers a living wage. Visit Go Green for sustainable alternatives.

Labor
Layoffs:


 * Angela Moore, E18%2DD419%2D44C5%2DAB5B%2D08BFE3A9DD81%7D&siteid=yhoof "Liz Claiborne to review brands, cut  jobs," MarketWatch, July 11, 2007.

Unions:


 * In the United States and Canada, we are bound by collective bargaining agreements with UNITE HERE (which was previously known as the Union of Needletrades, Industrial and Textile  Employees, prior to its merger with the Hotel Employees and Restaurant Employees  International Union) and with related locals. Most of the UNITE HERE represented employees  are employed in warehouse and distribution facilities we operate in California, New Jersey,  Ohio, Pennsylvania and Rhode Island. The agreements with UNITE HERE expire in May 2009,  other than the local agreements covering employees at our Allentown, Pennsylvania and  Cincinnati, Ohio facilities, which expire in March 2008 and June 2008, respectively.  Collectively, these agreements cover approximately 1,635 of our full-time employees. While  relations between the Company and the union have historically been amicable, the Company  cannot rule out the possibility of a labor dispute at one or more of its facilities. In  addition, we are bound by an agreement with the Industrial Professional & Technical Workers  International Union, covering approximately 210 of our full-time employees at our Santa Fe  Springs, California facility and expiring on May 14, 2010.


 * National collective bargaining agreement with UNITE HERE is Exhibit 10(c) in 10K filed 02/28/07

Occupational safety and health:


 * Between 07/11/2002 and 07/11/2007, OSHA inspections identified 9 violations by Liz Claiborne establishments

Global
History:


 * 1994 First adopted code of conduct


 * 1999 Independent monitoring pilot project in Guatemala with COVERCO


 * 2003 Joined Fair Labor Association

Policy:


 * Company site on workers rights


 * "We expect all of our suppliers to adhere to the Liz Claiborne Standards of Engagement, which include standards  relating to child labor, working hours, wage payments and working conditions generally. We  have an ongoing program in place to monitor our suppliersí compliance with our Standards. In  this regard, each year, our internal or external monitors inspect a substantial portion of  our suppliersí factories. Should we learn of a supplierís failure to comply with our  Standards, we urge supplier to act quickly in order to comply. If a supplier fails to  correct a compliance deficiency, or if we determine that the supplier will be unable to  correct a deficiency, we may terminate our business relationship with the supplier. In  addition, we are a participating company in the Fair Labor Associationís program. The Fair  Labor Association is a non-profit organization dedicated to improving working conditions  worldwide. Our human rights compliance program was accredited by the Fair Labor Association  in May 2005. This accreditation must be renewed every three years."

Campaigns against company:


 * 1999: defendant in lawsuit filed by Global Exchange and Sweatshop Watch on behalf of approximately 40,000 garment workers in Saipan.  The suit alleged that workers faced  repeated harassment, physical abuse, and poor working conditions in the South Korean-owned  Sako factory, Global Manufacturing Incorporated, Diovra Saipan Limited, the  Concord Garment Manufacturing Corporation, Jin Apparel Incorporated, and other  companies that produced products for large U.S. retailers such as Gap Inc., Cutter &  Buck, Chadwick's of Boston Limited, Donna Karan International, Polo Ralph Lauren  Corp., Gymboree, J. Crew, Phillips Van-Heusen,  Nordstrom, Tommy  Hilfiger, and Wal-Mart.


 * 1999: five attempts to organize a union at Doall factory in El Salvador were crushed through mass illegal firings. Liz Claiborne company has been sewing garments at the  Korean-owned Doall factories in El Salvador since 1992. The women earn just 74 cents for  every $198 Liz Claiborne jacket they sew, and 58 cents for every $118 pair of pants. Their  wages amount to less than one-half of one percent of the retail price of the clothing.  USAS and the National Labor Committee reported these violations to the company,  which sent PriceWaterhouseCoopers to investigate.  The auditors found no violations.  A  letter-writing campaign ensued, urging Liz Claiborne to reinstate fired workers, undertake  independent verification, end worker abuses and disclose names of all its contractors.


 * 2001: On 13 December 2000, the Citra Abadi factory in Indonesia was hit by a strike involving about 4000 of its workers. The strike started when the management failed to give  an Annual Bonus whereas in 1998 and 1999 all workers received such a bonus. PT Citra Abadi  Sejati is a subsidiary of the Texmaco Group, producing for Nike, Levi Strauss &  Co., H & M, Talbot's,  Liz Claiborne, Inc., Dockers, Polo Ralph  Lauren, Calvin Klein.


 * 2001: the two unions at the Choishin and Cimatextiles factories in Guatemala, owned by a Korean-based company called Choi & Shin's, went public on July 9, 2001.  Both  factories produce for Liz Claiborne and are located in Villa Neuva, just outside Guatemala  City, Guatemala.  Union supporters reportedly began to face death threats, threats to close  the factory, blackmail, the calling of meetings during work hours to denounce the union, and  the stoning of the workers' meeting place while meetings are taking place.  These events  escalated and on Wednesday, July 18th, the union supporters were attacked by a mob of  non-union workers.  The mob seemed to be orchestrated by the factory management, which  motivated the non-union workers with threats that the factory will close and that the  workers will be blacklisted and never get work again. US/LEAP organized a pressure  campaign, urging Liz Claiborne to intervene and also initiated a letter-writing campaign  aimed at the company and at the Guatemalan  government.


 * 2004: National Labor Committee includes Liz Claiborne in a campaign against forty companies producing in Bangladesh.  The goal is for firms to pledge to abide by legal labor  protections for pregnant women.  Liz Claiborne signed the pledge.

Major reports:


 * 1) Human Rights Watch, Guatemala Discrimination Against Women Workers  2002


 * 1) Hong Kong Christian Industrial Committee, China Women Workers in Special Economic Zones  2004


 * 1) Maquila Solidarity Network, Transparency Report Card  2006


 * 1) National Labor Committee, US-Jordan Free Trade Agreement  2006

Human Rights
Human Rights Watch, Guatemala Discrimination Against Women Workers 2002

Environment
Human Rights Watch, Guatemala Discrimination Against Women Workers 2002

Social Responsibility Initiatives

 * In 1992, Liz Claiborne started an initiative called Love is Not Abuse which seeks to educate about domestic violence.


 * Liz Claiborne Foundation supports organizations in U.S. communities in the vicinity of the company's facilities.

Business Scope
Lines of Business and Major Products Paragraph

Units/Subsidiaries

Liz Claiborne, Inc., operates the following business segments: Wholesale Apparel, Wholesale Non-Apparel and Retail. We also license to third parties the right to produce and market products bearing certain Company-owned trademarks.

Units/subsidiaries

 * Bright Win Limited	 	Hong Kong
 * C & C California, Inc.	 	California
 * Claiborne Limited	 	Hong Kong
 * Cleo Acquisition	 	Delaware
 * DB Newco Corp.	 	Delaware
 * Handycell Ltd.	 	United Kingdom
 * High Mallow Company N.V.	 	Netherlands
 * L.C. Augusta, Inc.	 	Delaware
 * L.C. Caribbean Holdings, Inc.	 	Delaware
 * L.C. Libra, LLC	 	Delaware
 * L.C. Licensing, Inc.	 	Delaware
 * L.C. Service Company, Inc.	 	Delaware
 * L.C. Special Markets, Inc.	 	Delaware
 * L.C.K.C., LLC	 	Delaware
 * LCI Acquisition U.S., Inc.	 	Delaware
 * LCI Holdings, Inc.	 	Delaware
 * LCI Investments, Inc.	 	Delaware
 * Retrain N.V.	 	Belgium
 * Segrets, Inc.	 	Delaware
 * Shenghui Fashion (Shenzhen) Company Limited	 	China
 * Skylark Sport Marketing Corporation	 	California
 * Textiles Liz Claiborne Guatemala, S.A.	 	Guatemala
 * Westcoast Contempo Fashions Limited 	Canada
 * Westcoast Contempo Promenade, Inc.	 	Washington
 * Westcoast Contempo Retail, Inc.	 	Washington
 * Westcoast Contempo USA, Inc.	 	Washington
 * Yonfield Trading Limited	 	Hong Kong

In addition, see brands below; for full list of subsidiaries see Exhibit 21 of 10K filed 02/28/07.

Brands

 * Axcess
 * Bora Bora
 * C & C California
 * Claiborne
 * Concepts by Claiborne
 * Curve
 * Dana Buchman
 * Elisabeth
 * Ellen Tracy
 * Emma James
 * Enyce
 * First Issue
 * Intuitions
 * J.H. Collectibles
 * Juicy Couture
 * Kate Spade
 * Kenzie
 * Kenziegirl
 * Laundry by Shelli Segal
 * LIZ
 * Liz & Co.
 * Liz Claiborne
 * Lucky Brand Jeans
 * Mac & Jac
 * Mambo
 * Marvella
 * Mexx
 * Monet
 * Monet 2
 * Prana
 * Realities
 * Sigrid Olsen
 * Soul
 * Spark
 * Stamp 10
 * Tapemeasure
 * Tint
 * Trifari
 * Villager
 * Yzza


 * Liz Claiborne Inc. holds the exclusive, long-term license to produce and sell men's and women's collections of DKNYÆ Jeans and DKNYÆ Active in the Western Hemisphere


 * The Company also has the exclusive license to produce jewelry under the Kenneth Cole New York and Reaction Kenneth Cole brand  names.

Suppliers

 * Products produced in Asia represent a substantial majority of the Company's sales. "We also source product in the United States and other regions.  During 2006, several hundred  suppliers, located in approximately 52 countries, manufactured our products,with the largest  finished good supplier accounting for approximately 4% of the total of finished goods we  purchased. We continually seek additional qualified suppliers throughout the world for our  sourcing needs and seek to allocate our production requirements to suppliers appearing to  have superior capacity, quality (of product, operation and human rights compliance) and  financial resources. Our purchases from our suppliers are processed utilizing individual  purchase orders specifying price and quantity of the items to be produced.  We do not have  any long-term formal arrangements with any of the suppliers that manufacture our products.   We believe we are the largest customer of many of our manufacturing suppliers and consider  our relations with such suppliers to be satisfactory."


 * "Our largest supplier of finished products manufactured approximately 5% of our purchases of finished products during 2004. In each of 2004, 2003 and 2002, our ten largest suppliers  for the year manufactured in aggregate approximately 33%, 35% and 35%, respectively, of our  purchases of finished products."

Identified suppliers:


 * Gelmart Industries Inc., Philippines: intimate apparel
 * The Levy Group, Inc., U.S.A.: licensed to produce Dana Buchman, Dana Buchman Luxe labels, Liz Claiborne womenís coat line, Claiborne  Men
 * Mithat Giyim ve Ticaret AS, Turkey
 * Perry Mfg. Co., U.S.A.: El Salvador factory produces women's sportswear
 * Tama Mfg. Co., Inc., U.S.A.

Financial Information
Ticker Symbol: LIZ (common)

Main Exchanges: NYSE

Investor Website: Liz Claiborne Investor Relations Overview

Largest ShareholdersFrom Yahoo Finance profile

Executives
William L. McComb (Chief Executive Officer), Michael Scarpa (Chief Operating Officer), Jill Granoff (Executive Vice President, Direct Brands), Tim Gunn (Chief  Creative Officer), Lawrence D. McClure (Senior Vice President, Human Resources),  Roberta Schuhalter Karp (Senior Vice President, Business Development and Legal/Corporate  Affairs), Nick Rubino (Vice President, General Counsel and Corporate Secretary),  Robert Vill (Vice President, Finance and Treasurer), Elaine H. Goodell (Vice  President, Corporate Controller & Chief Accounting Office)

Board members & affiliations

 * Bernard W. Aronson (Managing Partner, ACON Investments LLC),
 * Daniel A. Carp (Retired Chairman and CEO, Eastman Kodak Company),
 * Raul J. Fernandez (Chief Executive Officer and Chairman of the Board, ObjectVideo, Inc.),
 * Nancy J. Karch (Director Emeritus, McKinsey & Co.),
 * Kenneth P. Kopelman (Partner in the New York City law firm of Kramer, Levin, Naftalis & Frankel LLP),
 * Kay Koplovitz (Chairman, Principal, Koplovitz & Co. LLC),
 * Arthur C. Martinez (Retired Chairman, President, and Chief Executive Officer, Sears, Roebuck and Company),
 * William L. McComb (Chief Executive Officer),
 * Oliver R. Sockwell (Retired President and Chief Executive Officer, Construction Loan Insurance Corporation),
 * Paul E. Tierney, Jr. (Co-Founding Member, Development Capital, LLC]; General Partner, [[Aperture Venture Partners, LLC)

Executive/director compensation

 * In 2006, Paul R. Charron (former CEO) raked in $9,806,114 in total compensation according to the SEC.  CFTOKEN=19129383 AFL-CIO Paywatch


 * Pay for key executives (as of 31/12/06):
 * William L. McComb (CEO & Exec Dir): Pay $577.00K; Exercised options $0
 * Trudy F. Sullivan (Pres): Pay $1.10M; Exercised options $0
 * Michael Scarpa (COO & Sr.VP of Fin & Distrib): Pay $646.00K; Exercised options $0
 * Lawrence D. McClure: Pay $464.00K; Exercised options $0

Contact Information
1441 Broadway

New York, NY 10018

U.S.A.

Tel:1-212-354-4900

Fax:1-212-626-1800

Website: http://www.lizclaiborneinc.com

Books on the Company

 * Collins, Jane L. 2003. Threads: Gender, Labor, and Power in the Global Apparel Industry. Chicago: University of Chicago Press.


 * Brands, H.W. 1999."Chapter 21: Dress for Success-Liz Claiborne" in Masters of Enterprise: Giants of American Business from John Jacop Astor and J.P. Morgan to Bill Gates  and Oprah Winfrey.Free Press.


 * Landrum, Gene N. 1994.Profiles of Female Genius: Thirteen Creative Women who Changed the World. Amherst, NY: Prometheus Books.

Related SourceWatch articles

 * Fair Labor Association

External Resources

 * Wikipedia article on Liz Claiborne, Inc.


 * Liz Claiborne Investor Relations Overview


 * Liz Claiborne: Our Company History


 * Yahoo Finance profile


 * Annual Income Statement


 * &CFTOKEN=19129383 AFL-CIO Paywatch


 * Co-Op America Summary


 * Occupational Safety & Health Administration, ate=All&officetype=All&Office=All&p_case=closed&endmonth=07&endday=11&endyear=2002&startmont h=07&startday=11&startyear=2007 Liz Claiborne OSHA Inspections, Department of Labor.


 * Company site on workers rights


 * Collins, Jane L. 2003. Threads: Gender, Labor, and Power in the Global Apparel Industry. Chicago: University of Chicago Press.


 * Brands, H.W. 1999."Chapter 21: Dress for Success-Liz Claiborne" in Masters of Enterprise: Giants of American Business from John Jacop Astor and J.P. Morgan to Bill Gates and Oprah  Winfrey.Free Press.


 * Landrum, Gene N. 1994.Profiles of Female Genius: Thirteen Creative Women who Changed the World. Amherst, NY: Prometheus Books.


 * Guatemala: Women and Girls Face Job Discrimination, Human Rights Watch, February 12, 2002.


 * Conditions of Women Workers in Special Economic Zones and Labour Standards in Supplier Factories of German  Garment Retailer Companies and Brands in China, Hong Kong Christian Industrial  Committee, September 16, 2004.


 * Revealing Clothing: 2006 Transparency Report Card, Maquila Solidarity Network, December 7, 2006.


 * U.S.-Jordan Free Trade Agreement Descends into Human Trafficking and Involuntary Servitude, National Labor Committee, May 2006.


 * EPA Enforcement & Compliance History Online


 * Love is Not Abuse


 * The Liz Claiborne Foundation

External Articles

 * Fortune 500 2007: Liz Claiborne, Fortune (via CNN Money)


 * Michael D. Cole, "The Apparel Top 50: A Rising Tide," Apparel Magazine, July 1, 2005.


 * Latest 10-K for Liz Claiborne (filed Feb. 28, 2007)